Apple WWDC: AI Expectations

Apple's Worldwide Developers Conference (WWDC) is underway as investors look for advancements in artificial intelligence (AI). TECHnalysis Research president Bob O'Donnell discussed what Apple needs to do to regain Wall Street's confidence.

The conference is expected to highlight design and productivity improvements for Apple's operating systems. Bob O'Donnell mentioned the expectation of new UI designs for iOS, Mac OS, watch OS, iPad OS, TV OS, and Vision Pro OS, aiming for a consistent look similar to Vision Pro. A new numbering scheme aligning with calendar years is also anticipated, potentially renaming iOS 19 to iOS 26.

AI and Market Expectations

Previews suggest limited advancements in Apple intelligence and Siri, which may disappoint AI enthusiasts and Apple fans. O'Donnell noted Apple's history of well-timed releases, raising the question of whether their delayed AI advancements will ultimately matter, as AI adoption is not yet universal.

Generative AI and Agents

The discussion covered generative AI potentially changing search queries. The focus is expected to shift towards AI agents that perform actions, moving beyond simple chatbots. Apple presented a vision of this at last year's WWDC but has struggled to deliver. Previous attempts at text summarization and notification summaries did not perform as expected.

Apple currently relies on other companies' LLMs, raising questions about the need for its own. The company might offer a preview of this. The need for clarification was expressed on how Siri and Apple intelligence will integrate, addressing current confusion. Partnerships with LLM providers, such as Google, were also mentioned as potentially impactful, although an announcement may not occur.

Wall Street Expectations

The bar is high for Apple in the AI race, given its large user base. To impress Wall Street, Apple needs to demonstrate progress on its AI vision from last year, including developing its own models and clarifying the roles of Siri and Apple intelligence.